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Re: Report for US Income Tax Purposes

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Community Guru
Ronald T Member Since: Sep 14, 2009
1 of 3

oDesk support seems unable to answer this question: "What single, "official" report is intended for use by US tax payers to determine total income per client for the entire year 2014?"

A "Transaction History" report filtered from Jan. 1, 2014 through Dec. 31, 2014, inclusively, for "Credits" and "All Clients" results in a report for "Statement Period Jan 1, 2014 to Dec 31, 2014" listing each individual transaction (no client subtotals) with "Total Credits" for the year 2014.

 

If needed, to determine the client subtotals, simply download to a csv file (e.g., statement_20140101_20141231_cred.csv), sort and group clients as-need, and calculate the subtotal for each client.

 

The "Transaction History" report seems to provide data for tax purposes, but is that the "official" report to use for US income tax purposes?

 

Now, the "Earnings by Client" report for 2014 results in significantly different results as compared to the "Transaction History" report. Is the "Earnings by Client" report the "official" report to use for US income tax purposes?

 

Why the inconsistencies? The same problems were brought to the attention of oDesk support last year.

 

Furthermore, does the issue of "Constructive Receipt" become important when using oDesk reports to determine income for the year 2014?

Any thoughts?

 

Check out my post titled "US Income Tax Constructive Receipt" http://community.odesk.com/t5/Freelancers/US-Income-Tax-Constructive-Receipt/m-p/60652#M22041

 

 

 

Ron aka LanWanMan
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Suzanne N Member Since: Aug 15, 2012
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I used my bank records last year for the deposits made because the reports were inconsistent. It took me four weeks to get an answer from support last year on which was correct because Earnings by Client and Transaction History had different amounts. 

 

Odesk from my understand if you make over $20,000 sends out a 1099 but if it is under you have to figure it out yourself. I went by deposits made last year to my bank account.

 

Edited to add a bit of information From IRS Website.

 

http://www.irs.gov/publications/p538/ar02.html#en_US_201212_publink1000270582

 

Generally, individuals must adopt the calendar year as their tax year. An individual can adopt a fiscal year provided that the individual maintains his or her books and records on the basis of the adopted fiscal year.

 

A calendar year is 12 consecutive months beginning on January 1st and ending on December 31st.

 

Constructive receipt.   Income is constructively received when an amount is credited to your account or made available to you without restriction. You need not have possession of it. If you authorize someone to be your agent and receive income for you, you are considered to have received it when your agent receives it. Income is not constructively received if your control of its receipt is subject to substantial restrictions or limitations.

 

 

Example.

You are a calendar year taxpayer. Your bank credited, and made available, interest to your bank account in December 2012. You did not withdraw it or enter it into your books until 2013. You must include the amount in gross income for 2012, the year you constructively received it.

 

You cannot hold checks or postpone taking possession of similar property from one tax year to another to postpone paying tax on the income. You must report the income in the year the property is received or made available to you without restriction.

 

 

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Ronald T Member Since: Sep 14, 2009
3 of 3

SN, thank you for your very thorough (and quick) reply, Kudos! "Best Answer" candidate; award pending.

For last year 2013, as a result of numerous inconsistent replies from support, after obtaining written (email) permission from the IRS, I used the oDesk report that most favored my situation. In my case, the use of bank records was not practical due to having used multiple withdrawal methods and subsequent changes to bank accounts.

Because of language related issues, both verbal and written, dealing with support has not been practical -- time consuming -- conflicting answers -- answers that had nothing at all to do with the issues involved for the tax year 2014.

With regard to "Constructive Receipt," although I will not be affected, I mentioned "unfettered control"; that is, as it might pertain to freelancers' involvement with suspended accounts, suspended financials, accounts under review, etc.

Another reason that I had mentioned "Constructive Receipt" is that other programs (e.g., VA) in the US have eligibility requirements that take into account what amounts to as constructive receipt (different agencies; different verbiage). Typically for those receiving a W2, "wages" apply when physically paid; whereas in some cases (e.g., self-employed -- independent contractors -- freelancers) earnings are considered when earned despite when they might be actually paid (i.e., actual receipt).

 

Ron aka LanWanMan
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